Suppose PayPal (PYPL) has no debt and an equity cost of capital of 9.2%. The average debt-tovalue
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Suppose PayPal (PYPL) has no debt and an equity cost of capital of 9.2%. The average debt-tovalue ratio for the credit services industry is 15%. What would its cost of equity be if it took on the average amount of debt for its industry at a cost of debt of 6%?
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